Small Caps Expected
To Trail Big Brethren

Slower Profit Gains
Are Seen for 2007;
Health-Care Focus

Small-capitalization stocks are liable to run into head winds this year -- but rather than shun this volatile chunk of the market, investors may want to pick their spots with care.

Small stocks did unexpectedly well in 2006. The Russell 2000 index of small stocks rose 17%, marking the eighth straight year the index has outpaced the broad Standard & Poor's 500-stock index, based on price return.